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Share Liquidity and Corporate Efforts to Enhance it. A study on the Swedish Stock Exchange

Gårdängen, Maria LU (2005)
Abstract
All modern firms need access to capital markets at the lowest possible cost. Today's investors want to be able to increase or decrease their ownership rapidly, at low transaction costs and they demand return compensation for the trading costs they meet. This means that the price of the firm's security will reflect its share liquidity characteristics. Consequently liquidity-increasing financial investments can increase the value of the firm, which in turn will lead to a reduction in the firm's cost of capital.



The thesis consists of four studies that explore share liquidity for Swedish firms listed on the Stockholm Stock Exchange. The first study provides insight into the question of key determinants of cross-sectional... (More)
All modern firms need access to capital markets at the lowest possible cost. Today's investors want to be able to increase or decrease their ownership rapidly, at low transaction costs and they demand return compensation for the trading costs they meet. This means that the price of the firm's security will reflect its share liquidity characteristics. Consequently liquidity-increasing financial investments can increase the value of the firm, which in turn will lead to a reduction in the firm's cost of capital.



The thesis consists of four studies that explore share liquidity for Swedish firms listed on the Stockholm Stock Exchange. The first study provides insight into the question of key determinants of cross-sectional variations in bid-ask spreads in a purely order-driven market. The second study examines the impact of stock splits on the liquidity of securities in an order-driven market and the relationship between after-split spread changes and different pre-split firm-specific variables. The third study investigates the impact of equity issues on the liquidity of securities in an order-driven market and the relationship between after-issue spread changes and different pre-issue firm-specific variables. The fourth study analyzes the impact of cross-listing on a major foreign stock exchange on the share liquidity in the home market and the relationship between after-listing spread changes and different pre-listing firm-specific variables. (Less)
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author
supervisor
opponent
  • Professor Liljeblom, Eva, Svenska Handelshögskolan, Helsingfors
organization
publishing date
type
Thesis
publication status
published
subject
keywords
Financial science, Cross-listing, Equity issue, Split, Market microstructure, Bid-ask spread, Share liquidity, Cost of capital, Finansiering
pages
250 pages
publisher
Lund Business Press
defense location
Crafoordsalen, Holger Crafoords Ekonomicentrum I, Tycho Brahes väg 1, Lund
defense date
2005-10-21 14:15
ISBN
91-85113-07-7
language
English
LU publication?
yes
id
bef8a06e-9581-4677-b947-e9c4a55b100f (old id 24796)
date added to LUP
2007-06-01 08:26:53
date last changed
2016-09-19 08:45:07
@misc{bef8a06e-9581-4677-b947-e9c4a55b100f,
  abstract     = {All modern firms need access to capital markets at the lowest possible cost. Today's investors want to be able to increase or decrease their ownership rapidly, at low transaction costs and they demand return compensation for the trading costs they meet. This means that the price of the firm's security will reflect its share liquidity characteristics. Consequently liquidity-increasing financial investments can increase the value of the firm, which in turn will lead to a reduction in the firm's cost of capital.<br/><br>
<br/><br>
The thesis consists of four studies that explore share liquidity for Swedish firms listed on the Stockholm Stock Exchange. The first study provides insight into the question of key determinants of cross-sectional variations in bid-ask spreads in a purely order-driven market. The second study examines the impact of stock splits on the liquidity of securities in an order-driven market and the relationship between after-split spread changes and different pre-split firm-specific variables. The third study investigates the impact of equity issues on the liquidity of securities in an order-driven market and the relationship between after-issue spread changes and different pre-issue firm-specific variables. The fourth study analyzes the impact of cross-listing on a major foreign stock exchange on the share liquidity in the home market and the relationship between after-listing spread changes and different pre-listing firm-specific variables.},
  author       = {Gårdängen, Maria},
  isbn         = {91-85113-07-7},
  keyword      = {Financial science,Cross-listing,Equity issue,Split,Market microstructure,Bid-ask spread,Share liquidity,Cost of capital,Finansiering},
  language     = {eng},
  pages        = {250},
  publisher    = {ARRAY(0x89d15c0)},
  title        = {Share Liquidity and Corporate Efforts to Enhance it. A study on the Swedish Stock Exchange},
  year         = {2005},
}